Annual sales of light duty vehicles to rise through 2035

According to a recent report from Navigant Research, yearly sales for light duty vehicles (LDVs) are estimated to eventually surpass 122 million by the year 2035.

The report analyzes the LDVs market divided into eight segments: region, primary fuel, drivetrain and worldwide estimates of both the sales and the quantity of LDVs in use. Over 95 percent of the 1.2 billion vehicles around the world fit into the LDV category, and many of these use traditional internal combustion engines that are fueled by either diesel or gasoline.

These factors are important as leaders search for novel transportation business models. Recent years have shown increased urbanization, and governments are encouraging new transportation options, better fuel economy, as well as alternatives fuel vehicles.

“LDV sales are expected to increase, with growth concentrated in developing countries in Asia Pacific and with stop-start systems projected to grow most significantly as a strategy to comply with international fuel efficiency standards,” Scott Shepard, research analyst with Navigant Research, said. “LDVs primarily fueled by gasoline are expected to fall as a percentage of the overall global fleet from 82 percent in 2015 to less than 71 percent in 2035, particularly as diesel, electricity and other alternative fuels become more price-competitive and their respective infrastructure becomes more available.”